Negative Column Reversal

When the column of ‘X’ is turned into ‘O’, it becomes a negative column reversal pattern.

The number of boxes in the column of ‘O’ depends on the reversal criteria defined by the user. In a 3-box reversal chart, minimum 3 boxes will be printed in the column of ‘O’ and the pattern will be qualified when 3 boxes appear.

It shows that the trend has changed from up to down. This pattern gains more importance when higher box-values are used.

When the overall chart pattern is bearish, this pattern can assist in planning low risk trade opportunities. It can also be useful while using multi-box value P&F system matrix.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.